The essence of variance analysis is to capture a

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Cornerstones of Cost Management
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Chapter 12 / Exercise 9
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified
23) The essence of variance analysis is to capture a departure from what was expected.
Diff: 1Terms: varianceObjective: 1AACSB: Reflective thinking24) A favorable variance should be ignored by management.
Diff: 1Terms: favorable varianceObjective: 1AACSB: Reflective thinking7
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Cornerstones of Cost Management
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Chapter 12 / Exercise 9
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified
25) An unfavorable variance may be due to poor planning rather than due to inefficiency.
Diff: 2Terms: unfavorable varianceObjective: 1AACSB: Communication26) Explain the difference between a static budget and a flexible budget. Explain what is meant by a static budget variance and a flexible budget variance.
Diff: 2Terms: static budget, flexible budgetObjective: 1AACSB: Reflective thinkingObjective 7.21) The flexible budget contains: A) budgeted amounts for actual output B) budgeted amounts for planned output C) actual costs for actual output D) actual costs for planned output Answer:
ADiff: 1Terms: flexible budgetObjective: 2AACSB: Reflective thinking2) The following items are the same for the flexible budget and the master budget EXCEPT for:
CDiff: 2Terms: flexible budgetObjective: 2AACSB: Reflective thinking8
3) The sales-volume variance is due to:
BDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking

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